WTi crude oil settles at $107.99 for August delivery

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The price of WTI crude oil is settling -$7.26 lower at $107.99. That is for the August contract.

For the July contract has its last day of trading on June 21. It settled at $109.56 down -$8.03 or -6.83%.

The move lower has been helped by the stronger dollar, but is also be reflective of a falling of global demand. Industrial production was weaker than expected today. The housing market is under pressure as higher rates and prices start to sap demand. People are starting to feel the pain from stocks declining, inflation sapping purchasing power, and the potential for a decline in housing prices as well. The employment cycle is transitioning from hiring, to not hiring, to cutting jobs in certain industries. Employment is a lagging indicator, but it is showing some signs of a slowdown.

Driving is a necessity for many, but on the margin, if driving can be cut back to squeeze an extra few days or so for some, and a week for others, it will be done.

This article was written by Greg Michalowski at www.forexlive.com.

Go to Forexlive

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